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each trust has complicated matters also. As I stated in an eazlier letter, I was surprised that the <br />local bank which my dad and grandfather did business with since the 1940's, made it almost <br />impossible for us to meet their requirements in order to get a financial warranty. They wanted us <br />to put up all of the land the pit is on plus equipment, and then only if my step-mother Lydia <br />Webster (also co-trustee) and I personally guaranteed the loan. We feel that our equipment, <br />valued at over five times the required bond amount should have been satisfactory collateral. <br />Also, we have registered the business as an LLC and will be operating as such as soon as the <br />trusts which own the LLC are fully funded. Our attorneys have told us not to personally sign as <br />this may legally undo the LLC. Last winter I started working with Wells Fazgo bank and thought <br />they would be able to give us a blanket lien on our equipment. They did not see a problem <br />except in the end, after meeting with a business loan specialist in downtown Fort Worth, Texas <br />and a specialist in Colorado, they could not do it without personal guarantees also. I finally was <br />referred to Kevin Brubeck who said as long as we had 100% of the money in a CD, his bank <br />would do it without the guarantees. <br />The second problem we somehow had to work azound is the fact that our pit is well over <br />10,000 feet elevation and the season is limited. We cannot mine the sand and gravel except <br />between the middle of May to the middle of October. We had a hard time getting to all of the <br />equipment and could not physically hold an auction until azound June. <br />I know it has taken much too long for us to get the required bonding in place. I hope that you <br />will consider our current circumstances and see that we aze not just ignoring out obligations <br />according to the conditions of our mining permit. We appreciate your patience in the past by <br />allowing us time to do the things necessary to lower the original increased amount from over <br />$358,000.00 to the current amount of $132,500.00. We will continue to do certain things to <br />enable us to lower the amount even further in the neaz future. I am certain, barring any <br />unforeseen problems, that we will be able to have the collateral bond in place well before the <br />August meeting of the boazd, and therefore am asking for this extension. If you have any <br />questions, please give me a call. I appreciate all of your help in this matter. <br />Best Regards,//, <br />~~~~r~ <br />Daryl Webstet <br />